Nature plays a crucial role in supporting humanity and its economic activities. We rely on biodiversity, which includes bacteria, fungi, plants, and animals, for essential raw materials and food production. A healthy biodiversity is necessary to regulate natural processes, maintain ecosystem balance, and deliver vital ecosystem services such as fertile soils, clean air and water, pollination, climate regulation, and disease management.
Yet, while we recognize the importance of nature for our survival, we have failed to recognize their value, and have taken it for granted – as an infinite resource. With modern crisis such as climate-related droughts and flooding, land degradation, habitat destruction and biodiversity declines, we now understand the necessity to protect nature.
Nature Finance?
Nature finance, also known as finance for nature, refers to the ways we direct money to support the conservation, restoration, and sustainable use of ecosystems. It includes:
- Government subsidies for conservation projects
- Green bonds that raise funds for forest protection
- Private investments in nature-based businesses
- Innovative financial tools like biodiversity credits or climate-resilient insurance
In essence, nature finance is about aligning money with the health of our planet.
Nature is not free
Every breath we take, every drop of clean water we drink, and every bite of food we eat is possible thanks to nature. Forests filter the air. Wetlands clean our water. Pollinators like bees make our crops grow. Yet, these services, called ecosystem services, are often invisible in economic planning.
Today, many ecosystems are under pressure because they are seen as resources to be used, not as systems to be protected. By putting a value on nature, we start recognizing its importance in economic terms, which is essential to protecting it.
Nature’s financing gap
While governments and non-profit groups have spent billions trying to protect the environment, it is still not enough. Studies estimate that to reverse nature loss and build a nature-positive world, we need to invest hundreds of billions of dollars more each year.
This is known as the nature finance gap. To close it, we need new sources of funding not just from governments, but also from businesses, investors, and financial institutions. Nature cannot be saved with good intentions alone – it requires serious financial backing.
Tune to the Finance for Nature series to learn more about:
Ecosystem Services
Natural Capital Assessments
Nature-based Solutions
Green bonds and Nature Credits
Nature Restauration Law
The Environment Consultant 